Urgent Action Needed to Stop Currency Manipulation
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It’s no secret that the Chinese government’s currency manipulation policy has caused the loss of millions of manufacturing jobs. But the question is whether the federal government has the will to act “to level the playing field and provide the support and assistance that millions of American workers and their communities expect and deserve,” United Steelworkers (USW) President Leo W. Gerard said today.
Testifying before the U.S. House Ways and Means Committee this morning, Gerard said passing the Currency Reform for Fair Trade Act (H.R. 2378) would be a vital first step to begin the process of economic recovery. The bill would give the U.S. Treasury Department new tools to combat currency manipulation.
Over the past 10 years, the Chinese government’s policy of deliberately devaluing its currency has caused the U.S. trade deficit with China to balloon from $84 billion in 2001 to $227 billion in 2009. The Economic Policy Institute (EPI) estimates that the growth in the U.S. trade deficit with China since 2001 cost 2.4 million U.S. jobs between 2001 and 2008.
House Democrats Push ‘Make It in America’ Agenda
With the economy tanking, jobs as scarce as a real U.S.-made product in Wal-Mart and an election in three months, Congress has finally begun to pay attention to the massive decline of American manufacturing.
In the past week and a half, the U.S. House passed a handful of bills to boost domestic manufacturing. The bills are part of the House Democrats’ “Make It in America” initiative, a 17-bill package designed to help manufacturers recover from the Great Recession and the loss of 5.6 million manufacturing jobs in the past decade.
After the six-week August recess, the House Ways and Means Committee will hold important hearings on the issue of China’s manipulation of its currency. The AFL-CIO has been urging Congress to take quick, strong action to stop the unfair and illegal advantage against U.S. producers that China and other nations gain by undervaluing their currency.
Trade Deals Must Protect Everyone, Not Just Investors
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| Workers across the world, like these in South Korea, are opposed to trade deals that do not protect workers’ rights. |
Like the other provisions in U.S. trade agreements, the rules governing U.S. investment abroad and foreign investment in this country unfairly favor those with the capital while giving short shrift to workers and the environment.
Testifying before the House Ways and Means Subcommittee on Trade last week, AFL-CIO Policy Director Thea Lee said the investment provisions in U.S. trade agreements are out of balance, protecting investors’ rights, but not requiring investors to take responsibility to protect workers’ rights and the environment.
U.S. investors invested $333 billion in other countries in 2007 and $318 billion in 2008, more than any other country. The United States also was the largest recipient of foreign investment with $238 billion invested in 2007 and $325 billion in 2008.
